Gov’t to Rescue Over 100 Distressed Companies – Minister

Mr Robert Ahomka-Lindsay, a Deputy Minister for Trade and Industry, has re-affirmed government’s commitment to give stimulus packages to companies in distress under the “One District, One Factory” (1D1F) industrialisation policy.

He indicated that more than 100 ailing companies had been identified by the government and players in the private sector.

The Deputy sector Minister who was speaking in an interview with the media in Cape Coast on Tuesday, noted that the stimulus package formed part of the government’s plan to create a solid economy that thrived on strong private sector growth.

The move is in fulfilment of the 2018 budget pledge to set aside GH¢100 million to revamp some distressed businesses that were struggling to stay afloat due to challenges beyond them.

He blamed the phenomenon of collapsing companies on lack of prudent economic management policies by the previous administration characterised by high inflation, interest rate and the infamous “dumsor” – (power outages).

On government’s industrialisation drive, he indicated that as of November, 2018, the Central Region had registered over 40 companies under 1D1F with 35 at various stages of financial viability assessments by the Ministry and the banks.

In all, he revealed that the Ministry had received more than 1,000 business plans nationwide with 382 vetted and submitted to the 12 banks supporting with GH¢12billion.

He explained that out of the 382 business plans, about 104 were at the Credit Committee of the banks to access their documents and credit worthiness.

Mr Ahomka-Lindsay allayed the fears of a section of Ghanaians to achieve the government’s 1D1F manifesto pledge and assured that, “by the end of 2020, the factories will be established”.

The Deputy Minister of Trade and Industry reiterated government’s commitment to develop the private sector to foster growth and create more employment.

He said the government had proven its commitment to the growth of the sector since assumption of office of the Akufo-Addo led administration as the private sector remained the engine of growth and rallied the support of all.

Source: GNA